PUBLIC NOTICE OF SOLICITATION FOR BIDS OF THE ASSETS: Fulcrum Sierra BioFuels, LLC and Fulcrum BioEnergy, Inc.

Solicitation for bids of the assets of Fulcrum Sierra BioFuels, LLC and Fulcrum BioEnergy, Inc.

Solicitation of Bids: Development Specialists, Inc. (“DSI”) is marketing for sale the assets of Fulcrum Sierra BioFuels, LLC and Fulcrum BioEnergy, Inc. (together, “Fulcrum” or the “Company”).

Company Overview: Founded in 2007, Fulcrum is a leading clean energy company in the renewable fuels sector, focusing on converting municipal solid waste (MSW) into low-carbon transportation fuels, including sustainable aviation fuel (“SAF”) and renewable diesel. Fulcrum’s proprietary process combines gasification and Fischer-Tropsch technologies to convert organic landfill waste into liquid fuel. This waste-to-fuel process not only provides low-carbon renewable fuel but also reduces the environmental burden of waste management. The Biorefinery conducted initial operations in late 2023 producing approximately 6,000 gallons. Following a maintenance outage to replace, modify and repair certain equipment, the plant is nearly ready for start-up operations.   Prospective bidders could look to complete the outage work and operate the facility as designed and constructed or look to retrofit with preferred technology.

Assets for Sale: The assets owned by Fulcrum Sierra BioFuels, LLC (“Fulcrum BioFuels”) included in the stalking horse bid are as follows: a waste-to-fuels biorefinery with a design capacity of 11 million gallons per year of synthetic crude oil, located on 19.4 acres, 20 miles east of Reno, NV. Additionally, a feedstock processing facility situated on 10 acres, 10 miles east of Reno, NV. The bid also includes rights to a NV Energy high-voltage distribution agreement, providing 25 megawatts of total power delivery, and rights to a water supply agreement for 155 acre-feet per year. Other assets encompass tangible assets (PP&E and inventory), permits and licenses, causes of action related to Fulcrum Biofuels, and all associated security deposits.

Fulcrum BioEnergy, Inc. (“Fulcrum Parent”) is offering Expanded Assets for bidding, which are not included in the stalking horse bid. These Expanded Assets include 14 U.S. patents, 5 pending U.S. patent applications, 26 international patents, and over 30 pending international patent applications. Fulcrum Parent also has equity in UK subsidiaries that are currently in the design stages of development. These intellectual property assets and equity interests present a unique opportunity for interested parties to acquire valuable innovations and potential future revenue streams.

Bids can be made on the Fulcrum BioFuels assets included in the stalking horse bid and/or the Expanded Assets of Fulcrum Parent as well.

Current Situation: The Company filed for Chapter 11 bankruptcy on September 9, 2024. Development Specialists, Inc. (“DSI”) has been retained as financial advisor and investment banker for the proposed asset sale, subject to bankruptcy court approval.

Switch, Ltd. (“Stalking Horse Bidder”) has bid $15,000,000 for the assets of Fulcrum BioFuels, plus the assumption of certain liabilities.

Sale Process and Timeline:

Bid deadline: October 25, 2024, at 4:00pm (ET)

Auction: November 1, 2024, at 10:00am (ET)

To submit a bid and participate in the auction, a potential bidder must submit, among other things, a Nondisclosure Agreement (“NDA”), a Letter of Intent, and proof of financial capacity to close.

Contacts:
Morris, Nichols, Arsht & Tunnell LLP has been engaged as debtor’s counsel for the Company. For any inquiries or additional information, please contact: Robert Dehney – [email protected], Curtis Miller – [email protected], or Clint Carlisle – [email protected].

DSI team: 

DSI is one of the leading providers of management consulting and financial advisory services, including turnaround consulting, financial restructuring, litigation support, fiduciary services, and forensic accounting. Our clients include business owners, private-equity investors, corporate boards, financial institutions, secured lenders, bondholders, and unsecured creditors. For over 45 years, DSI has been guided by a single objective: maximizing value for all stakeholders.